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The Financial Express

Mobile phone operators will not get VAT rebate on renewing license

| Updated: January 10, 2023 21:39:46


Mobile phone operators will not get VAT rebate on renewing license

Grameenphone, Robi and Banglalink, three major mobile phone operators of the country are required to add the Value Added Tax (VAT) to the demanded money for renewing their license and purchasing spectrums.

Besides, the operators will not get any VAT rebate facility from the VAT to be paid for the same purposes.

A five-member bench of the Appellate Division of the Supreme Court headed by Chief Justice Hasan Foez Siddique delivered the verdict after hearing several appeal petitions filed by the mobile phone operators and government bodies.

Attorney Genral AM Amin Uddin and Additional Attorney General Sk Md Morshed appeared in the court hearing on behalf of the Natiional Board of Revenue (NBR), while Barrister Khandaker Reza-E-Raquib represented the Bangladesh Telecommunication Regulatory Commission (BTRC) and Barrister Mustafizur Rahman Khan appeared for the Grameenphone.

Later Mr Amin Uddin said, “Government gets a fee from the spectrum allocated to the Grameenphone, Robi Axiata and Banglalink. Value added tax is imposed on that fee. However, the companies challenged the decision of imposing VAT by filing case with the High Court.”

Barrister Mustafizur Rahman said, “Following the cases, three separate benches of the High Court division ruled that Grameenphone and Robi will get rebate facility from the VAT to be paid to the government, however, Banglalink will not get it.”

Later mobile operators, BTRC and NBR filed different appeal petitions on different grounds regarding the issue. After hearing on the petitions the Appellate Division delivered its verdict on Tuesday saying that Grameenphone, Robi and Banglalink are required to add the Value Added Tax (VAT) to the demanded money for renewing their license and purchasing spectrums.

Besides, the operators will not get any VAT rebate facility from the VAT to be paid for the same purposes.

BTRC lawyer Khandaker Reza-E-Raquib said, “BTRC will get Tk 22 billion from the three operators on different grounds including license renewal fee and revenue sharing fee. Besides, we (BTRC) will get another Tk 3.0 billion from them (operators). We will demand the money after receiving the certified copy of the verdict.”

The lawyer said BTRC will get Tk 15 billion from Grameenphone, Tk 5.0 billion from Robi and Tk 6.5 billion from Banglalink on different grounds.

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